Bitcoin’s Price Is at an All-Time Low Since 2020 — Should You Still Buy?

Bitcoin’s price has dived more than 50% from its November 2021 high of $69,000 per coin. At the time of writing, its price is $29,000.

Cryptocurrency is notorious for its volatility, and it swings more widely than any other market — this is evidenced by the fact that bitcoin climbed to $40,000 before falling to its current $29,000. And in 2021, its price fell below $30,000 before surging to November’s record high of $69,000.

With Bitcoin’s prices plummeting, you may be wondering if now’s a good time to buy.

Why is bitcoin dropping?

This week, we saw the collapse of Terra blockchain, its DeFi protocol Anchor and stablecoin UST. The Terra blockchain gained a lot of popularity in recent times and became a credible competitor to ETH.

There are many conspiracy theories surrounding the cause of Terra’s collapse, with some sources suggesting a coordinated "attack" from major New York main street funds. This was vehemently denied by said funds.

Whatever the reason, this caused panic in the crypto industry, sending bitcoin to its yearly low of <25000 USD/bitcoin.

The aftermath:

Terra (LUNA) $0.0000050 (-99.98%) ( 1w ago : USD 110)

UST 0.08 usd (-82%) ( 1w ago: USD 1.00)

Anchor protocol USD 0.107 (-99%) ( 1w ago: USD 2.33)

Should you still buy bitcoin?

The underlying principles for buying Bitcoin still haven't changed — it’s widely accepted, easy to send and accept globally, and extremely scarce and valuable ‘digital gold’.

Bitcoin’s supply is capped at 21 million coins, and there are already 19 million bitcoin in circulation. As the demand for this asset and cryptocurrency continues to increase, we may see the value continuing to rise.

Therefore, many might think that buying bitcoin right now is not a bad idea, especially if you’re investing for the long-term.

If you do choose to proceed, read up on dollar-cost averaging first, a technique where you buy in smaller amounts at regular intervals.

The Bottom Line

It’s easy to get caught up in the hype, but don’t rush in just because it’s cheap. Crypto remains a high-risk investment and there is a chance that you may not make any returns, so make sure you do your research and only invest money that you can afford to lose.

We’ll leave you here with a glossary of terms in case you’ve seen these around and don't know what they mean:

GM: Good morning

NFA: Not financial advice

DYOR: Do your own research

WGMI: We’re all gonna make it

NGMI: Not gonna make it

Rekt : Well, this just means you're wrecked.

Download the BigPay app on iOS an Android.

Disclaimer

This document has been prepared for informational purposes only and does not constitute an offer or the solicitation of an offer to purchase or to sell any securities, products or services by BIGPAY. Although the information contained in this document has been compiled and obtained in good faith, it has not been independently verified and no representation or warranty, express or implied, is made and no responsibility is or will be accepted as to or in relation to the accuracy, reliability or completeness of any such information. Any information and opinions expressed herein may be subject to change without prior notice. BIGPAY will not be responsible for any consequences resulting from the use of this document as well as the reliance upon any opinion or statement contained herein or for any omission. This document is confidential and may not be reproduced (in whole or in part) nor summarised or distributed without the prior written permission of BIGPAY. BIGPAY. All rights reserved.